Bank of Japan policymakers divided on shock stimulus

clock •

Bank of Japan board members were divided on the central bank's decision to unleash surprise stimulus measures at the end of October, minutes of their meeting have revealed.

Four out of nine policymakers opposed the decision to step up annual government bond purchases from Y50trn to Y80trn. Their concerns included the limited additional impact of further stimulus and the impact of a declining yen on small businesses.

However, the argument for more stimulus ultimately prevailed, with five members voting for the move.

They were led by Governor Haruhiko Kuroda, who has acted as a strong ally for Prime Minister Shinzo Abe's three-pronged 'Abenomics' economic rejuvenation programme.

Factors in favour of action included the need to prevent "a deflationary mindset" as oil prices fell.

"They stated that, to pre-empt manifestation of such risk and to maintain the improving momentum of expectation formation, the Bank should decide additional monetary easing at this time," noted the minutes.

In the event, the Bank of Japan's surprise stimulus sent the Nikkei soaring and caused the yen to plummet. But just two weeks later, data revealed Japan had slid back into recession.

More on Investment

Aberdeen dials back government bond and property conviction amid inflation risk

Aberdeen dials back government bond and property conviction amid inflation risk

Preference for EM equities

Michael Nelson
clock 13 October 2026 • 2 min read
Partner Insight: The Gilt Edge - Triple deadlock

Partner Insight: The Gilt Edge - Triple deadlock

The Gilt Edge is a new UK newsletter that brings PIMCO’s insights on the UK economy, public policy and financial markets directly to your inbox. Written by Rupert Harrison, Senior Adviser to PIMCO’s UK Portfolio Management Team and former Chief of Staff to Chancellor of the Exchequer.

Pimco
clock 13 October 2026 • 4 min read
Partner Insight: Are investors looking for an AI bubble in the wrong place?

Partner Insight: Are investors looking for an AI bubble in the wrong place?

As the AI industry expands rapidly, Vaughan Nelson thinks we should be wary of booms in narrower parts of the AI ecosystem.

Vaughan Nelson, Natixis Investment Managers
clock 08 October 2026 • 9 min read
Trustpilot